MCA Financial Group was engaged by a secured lender in a complex Chapter 11 bankruptcy involving a debtor with a portfolio of approximately 500 low-income residential properties. The debtor’s proposed reorganization plan sought to continue rental operations, rehabilitate properties, and reinvest proceeds into properties in more desirable locations. The lender retained MCA to assess the feasibility of the debtor’s plan, given concerns over the underlying assumptions, execution risks, and the potential deterioration of collateral value.
Leveraging deep expertise in bankruptcy proceedings, MCA conducted a rigorous analysis of the debtor’s plan, disclosure statements, and financial filings, as well as a comprehensive market assessment of the property locations. The team developed a detailed financial model to test the plan’s viability under multiple scenarios, stress-testing key assumptions to evaluate potential outcomes. This analysis provided the lender with a clear, data-driven assessment of whether the proposed plan could preserve value and mitigate risk.
The engagement presented numerous challenges, including evaluating multiple iterations of the debtor’s plan under tight deadlines and limited access to certain financial and operational disclosures. The debtor’s ongoing revisions introduced complexities that required MCA to pivot swiftly, adjusting its analysis in real-time to ensure the lender remained fully informed. Despite these constraints, MCA delivered a thorough expert report that offered critical insights into the feasibility risks embedded in the debtor’s projections.
MCA’s analysis and expert report were instrumental in enabling the lender to negotiate a favorable settlement, avoiding the costs and uncertainties of litigation. The settlement terms secured the lender’s right to initiate an orderly sale process, protecting the integrity of its collateral and ensuring a structured path to recovery. The legal team appreciated MCA’s responsiveness and ability to distill complex financial forecasts into clear and actionable intelligence in order to make informed decisions.
This engagement highlights MCA Financial Group’s ability to navigate intricate restructuring scenarios, providing clients with the strategic analysis necessary to drive informed decision-making in high-stakes bankruptcy matters.